Gen Y leading the renovations charge

Gen Y leading the renovations charge

Renovating is a high priority for an increasing number of home owners, according to Westpac's latest Home Ownership Report.

Renovating is a top priority for nearly one third of home owners considering a house-related activity in the next five years, according to Westpac's latest Home Ownership Report.

More than three quarters - 76% - of Australian homeowners are considering renovating their home, a 12 per cent increase since 2015.

Of those, almost half (47 per cent) are considering renovating, and one in five are already renovating.

Gen Y is the most likely generation of home owners to be considering renovating, with nearly half thinking about modifying their home.

(For those of you wondering, Gen X is the generation after the baby boomers, who were born during World War II. Gen Y is those born in the 1980s and 1990s.)

Not surprisingly, home owners who are getting married or having a baby are even more likely to be considering renovating.

The main reasons given for renovating were: to have a nicer home (74%), and to lower home maintenance and/or upkeep (30%).

The recent Westpac Herron Todd White report said renovation television shows could be contributing to the surge in renovations.

Chris Screen, head of home ownership, Westpac, which commissioned the research, said the competitive housing market has also triggered the surge in home renovations.

“With rising property prices and intense competition for property in metro areas, many home owners are looking to renovate their existing property rather than sell and risk losing their position in the market,” said Screen.

Sydney’s prestige market is experiencing a particularly strong increase in renovations, as strong market conditions lead homeowners to calculate that renovating increases the potential for capital gains, according to a recent Westpac Herron Todd White Property Report.

In Brisbane, the report found home owners tend to renovate to accommodate growing families, and to allow them to remain in areas they are established in.

Screen said that strong growth in property prices is also enabling home owners to increase the equity on their properties.